Groundbreaking HSBC study reveals four fifths of global Indians invest in home country

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Groundbreaking HSBC study reveals four fifths of global Indians invest in home country

Four fifths (79%) of global Indians including NRIs are investing in India, with 65% of those increasing their investments in a bid to promote positive change and support covid recovery, Global banking group HSBC has revealed today (18 November) in the findings of its first ever Global Indian Pulse.

The huge study examined the attitudes of 4,152 people across nine markets with a prominent Global Indian presence.

While 61% plan to live in India at some stage in the future, with family, friends, food, and culture key connectors.

Our report brings to life the huge contribution Global Indians make to the success and prosperity of both the countries where they live and India, through their connections to family and friends, their business ties, and cultural links, as well as their growing investments."

It identified and researched first, second and third generation Indians as follows: 

  • First generation Indians (born in India) are more likely to be between 30-39 and reside in Canada or UAE
  • Second generation Indians (not born in India but at least one parent born in India) are younger, more often studying and and more lkiely to live in Hong Kong, the UK or the UAE than any other generations
  • Third generation Indians (They and their parents were not born in India but they have at least one grandparent born in India) are more likely to be in the 40-49 age group, be employed and reside in Australia, Malaysia, Singapore and the UK than any other generation

HSBC highlighted how the Indian diaspora is the largest migrant population in the world and yet there is limited data looking at how they view the countries where they live, it said, as well as the strength and importance of their connections back to India.

Now, building on its 155-year relationship with India, its first edition of The Global Indian Pulse is "the most comprehensive cross-border study into Global Indian attitudes of its kind".

It provides what the Asia-focused global bank describes as "compelling evidence and new understanding of the emotional and financial contribution that ties three generations of Global Indians to both India, and to the countries that they were either born in, live in, or have settled in".

Richa Goswami, global head of customers and international at HSBC, said: "Today, the exchange of ideas, culture, money, and goods flow around the world more freely than ever before, and the global connections people make and maintain are a vital part of this.

"As the world's largest migrant population, Global Indians have a significant role to play here, and as a Global Indian myself I see first-hand the importance of these shared connections and sense of pride in the future of India.

Goswami added: "Our report brings to life the huge contribution Global Indians make to the success and prosperity of both the countries where they live and India, through their connections to family and friends, their business ties, and cultural links, as well as their growing investments.

"These connections bring security, new perspectives, and growing ideas, all of which can help us to understand how we can open up a world of opportunity for our customers wherever they are."

Sustainability plays a major role in investors' decision making, with more than three quarters (76%) of Global Indians surveyed who are making investments saying environmental and social initiatives including renewable energy and skills development are a key part of their decision making when investing in India.

The pandemic has driven a change in attitudes towards investment in India. Almost three quarters (72%) of Global Indians surveyed said the pandemic has made them feel closer to friends and family in India.

And as a result, two thirds (65%) have proactively increased their investments with the aim of promoting positive change in India and supporting the country's COVID recovery.

This was particularly true among the third generation Global Indians surveyed, with three fifths (63%) making the decision to increase their investments, despite having never lived there.

The research found the Global Indians surveyed maintain strong connections back to their homeland regardless of whether they are first, second or third generation. More than three quarters (77%) said they felt a strong connection with India, and four fifths (80 per cent) are very interested in the future success of India.

Even for those who have never lived in India, the connection remains strong, with the third generation Global Indians surveyed feeling just as attached to India as those who were born there.

The data reveals the feeling of missing India means different things to different generations and could be experienced through family, food, friends, culture or religion:

Which, if any, of the following do you miss, from India?

 

Total

First Generation

Second Generation

Third Generation

Family

57%

69%

52%

30%

Food

52%

55%

51%

42%

Friends

46%

57%

36%

29%

Culture

46%

47%

47%

39%

Religion

25%

25%

25%

26%

 

Professor Jaideep Prabhu, Jawaharlal Nehru Professor of Indian Business & Enterprise at the Judge Business School, University of Cambridge said: "There is a huge vibrancy and an incredible untapped economic opportunity associated with India. This potential transcends traditional investments, like stocks, shares and property, and goes much deeper into the two-way flows of talent, capital, technology and access to markets between India and Global Indians' countries of residence."

Historic reporting has highlighted the phenomenon of a ‘brain drain' from India, however the Global Indian Pulse supports more recent thinking which shows more of a flow of people and ideas both to and from India.

The report examines whether Global Indians plan to either return or live in India in the future, and while just 4% of Global Indians surveyed have never visited India, three fifths (61%) report they are planning to live in India at some stage in their lives.

However, in keeping with the concept of ‘brain circulation' this is not necessarily a permanent move, with over three quarters (78%) of second generation and more than four fifths (82%) of third Generation Global Indians surveyed saying they still plan to retire in their current country of residence.